Black Diamond's Sunday Creek Lodge Contracted to Full Occupancy
May 31 2011
CALGARY, ALBERTA--(Marketwire - May 31, 2011) - Black Diamond Group Limited ("Black Diamond" or "the Company") (TSX:BDI), a leading provider of modular accommodation and energy services in North America, is pleased to announce the Company has signed a long-term accommodation agreement with a major Canadian oil company for its Sunday Creek Lodges east of Conklin, AB.
The agreement is an amendment to a previously announced long-term rental contract which brings the utilization of the lodge to 100 per cent, with sole occupancy for the tenant for 18 months, commencing April 1, 2011. The contract is valued at approximately $12.5 million, bringing the total value of the rental contract for the tenant to approximately $47.5 million. Now at full capacity for the year, this facility will generate approximately 15% more revenue than in 2010.
Sunday Creek Lodges have been operating at near capacity since opening in December 2009 and feature executive and VIP-style accommodations, state-of-the-art industrial kitchen and dining facilities and professional-quality recreation facilities for workers in the oil sands region of northern Alberta.
"There is significant activity in this region for major oil producers and we are extremely pleased that Black Diamond is able to support our customers growing accommodation needs for their workforce," said Trevor Haynes, President and CEO of Black Diamond Group.
About Black Diamond
Founded in 2003, Alberta-based Black Diamond Group Limited is a leading provider of temporary and permanent modular building and energy services products. Through its wholly-owned subsidiaries, Black Diamond Limited Partnership, Nortex Modular Leasing and Construction Company and through its 50% equity participation in the Black Diamond Dene Limited Partnership and Black Diamond West Moberly Limited Partnership, Black Diamond operates three complementary divisions in thirteen strategic locations across Canada and USA.
Black Diamond Camps and Logistics rents and sells remote workforce housing and provides associated services; BOXX Modular specializes in renting or selling a broad range of modular work space solutions and Black Diamond Energy Services rents and sells a full complement of oilfield equipment and services. Black Diamond provides world-class services to a full spectrum of industries including oil, gas, mining, power, construction, engineering, military, government and education.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
Black Diamond Group Limited Trevor Haynes President and Chief Executive Officer (403) 206-4737 (403) 264-9281 (FAX)
Black Diamond Group Limited Michael Burnyeat Vice President, Finance and Chief Financial Officer (403) 206-4740 (403) 264-9281 (FAX) www.blackdiamondlimited.com